According to Point a, Clause 1, Article 3 of Circular 111/2013/TT-BTC (amended and supplemented in Circular 92/2015/TT-BTC) stipulates exemption from personal income tax when transferring real estate (transferring red book ownership) (including future housing, future construction works according to the law on real estate business) between:
- Husband and wife.
- Biological father, biological mother and biological child.
- Foster father, foster mother and foster child.
- Father-in-law, mother-in-law and daughter-in-law.
- Father-in-law, mother-in-law and son-in-law;
- Grandparents with grandchildren, grandparents with grandchildren.
- Brothers and sisters.
Note: In case real estate (including future housing and future construction works according to the provisions of law on real estate business) created by the husband or wife during the marriage is determined to be the common property of the husband and wife, when divorced, it is divided by agreement or by court judgment, then the division of this property is exempt from tax.
Thus, if the red book is transferred to relatives such as husband and wife, parents and children, grandparents and grandchildren, or siblings, personal income tax will not be paid.
